Closing Your Business
If you have ever wondered, this week You Legal TV presents a short list of steps that you may need to take when winding down your company.
See below for the complete transcript of this episode -
As with most things in this world, the beginning is usually more exciting than the end. For example, we focus a lot of time and energy on the birth of a business, but when do we stop to consider what happens at the end?
Whether it’s lack of succession, financial hardship, or even a loss of interest, a profitable business might choose to cease trading, and this can be as complex and multi-faceted an endeavour as starting the business. You will have obligations to Federal, State and even local government agencies, not to mention employees and other private enterprises.
This week on You Legal TV, we take a quick look at some of the main areas you will need to tackle.
If your business operates as a partnership, there are specific legal requirements if a partner wishes to retire or dissolve the partnership. There can be serious financial liabilities if these requirements are not followed, and a written agreement should always be prepared for the dissolution of a partnership.
If you operate as a company and have ceased trading, you must remember that you will continue to be registered with ASIC and, therefore, continue to be subject to all the legal requirements of a registered company.
You can make an application to ASIC to voluntarily deregister your company if you fulfil a range of requirements relating to the company’s legal, financial and administrative status and all members of the company agree to the deregistration.
As part of closing your business, there will also be a range of cancellations relating to taxation - including GST, ABN, PAYG, and Payroll.
You will need to ensure that all employee entitlements are paid out and finalised.
There is also likely to be a range of lease obligations you will need to cancel, finalise or transfer as part of closing your business. These may include leases on premises, cars, equipment and furniture.
You should check the exit arrangements on the lease for your business premises. You may be liable for rent and other costs until the end of the lease term, even if your business has stopped trading.
While this list may seem overwhelming, a competent advisor can make it a smooth transition. We at You Legal would love to help you with this giant step, so please get in touch.
Visit our blog for more information, or contact us for advice on your legal obligations. We’re always happy to help.
Episodes 2 & 3 of the Confidence to Lead series have arrived. Head on over to www.youlegal.com.au/confidence and listen in. This week, we explore the legal landscape that governs directors’ duties. It’s essential background information.
In other news, our CEO, Sarah Bartholomeusz, met the Prime Minister, the Honourable Malcolm Turnbull! If you are interested, here’s what she had to say about it: On Malcolm Turnbull and why Persistence is the key
What Should I Do Next?
Contact us if you would like further legal advice on Closing Your Business. Our lawyers at You Legal will be happy to assist you in whatever way we can.
* This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.